Q1 2026: KNOWING WHAT TO DO CAN BE THE EASY PART… DOING IT... IS USUALLY THE HARD PART

Life is full of choices. From the day we begin to understand freewill, the rest of our lives are dictated by choices. And, most of those decision matrices have a good and bad outcome. General Norman Schwarzkopf said it best: “The truth of the matter is that you always know the right thing to do. The hard part is doing it.”

As we enter a world that is increasingly reactionary and focused on “immediate satisfaction”, the idea of knowing what is right and wrong becomes more of a question about which one is faster –and not which one will benefit me the most in the long run. Almost everything in life that has true meaning or value takes time. It takes years to growup, it takes months to produce crops, and it takes years to raise livestock. Look at the highway systems – projects take years, while ever-evolving conditions ensure that more work is always to be done. 

With technology and social media, we can access information instantly. Although we have the information, now what? The work must begin, and the discipline to stay the course must remain a constant focus. Staying disciplined in all our choices ultimately determines the results – especially in the long run. And, although you may be tired of hearing it – it cannot be clearer what disciplined investing can do. We know we need to save for the future. We know we need to stay the course even when the markets get choppy. We know we need to trust the plan and the choices we make – and yet, that is the hardest part. Sticking to your plan is what matters, and we are here to ensure that your plan remains on target, focused on your goals, and ready to succeed. 

This brings us to our Economic and Market outlook. Contrary to the never-ending doomsday news cycle, markets remain confident in an IRAN nuclear resolution and a potential end to the war. The S&P 500 is up over 13% since March 30th, 2026 – marking an all-timehigh. This does not mean things are smooth sailing from here. The downside risk for oil, markets, and the chance of this war going into a deeper or darker phase that prolongs the conflict will no doubt hamper future gains. But, similar to April of 2025 – these market shocks are swift. Missing the recovery is almost impossible to replace over time.¹

Missing just 10 of the best days can change a sequence of returns long term. While this does not mitigate the risk of the market or the bear markets that are yet to come, it does illustrate the benefits of remaining disciplined and committed to your plan. 

Looking at the data – what is good? Sadly, good news never sells as fast as bad news or fear. So, here is some data to ease the fear and give some good news to your news cycle.²

We on the Investment Committee remain focused on earnings growth and U.S. equity positions. The Committee continues to see strong U.S. growth and the strength from year-end 2025 carrying into 2026. Tax Cuts remain stimulative, and even with rates not fully accommodative, the combination of lower rates and lower taxes continues to produce strong consumer spending. Although sentiment dropped below 50 in April, sentiment was extremely strong in February and March, peaking at 56.6.³This reflects the impact of the war, and reinforces that a resolution will be key to recovery across sectors.

Oil remains a concern – as it directly impacts the cost of fuel (mainly diesel), whichcauses increases in shipping costs and can make inflation even stickier long term. Our other concern remains the over-supply of oil due to the tankers that are unable to reach their port / refinery destinations. We have millions of barrels in transit – if and when a resolution is achieved, that supply vs. demand equation remains deflationary. 

Contrary to the projections of the market, the 10 Year Treasury remains channeled within 4 to 4.4%. This has posed a challenge for mortgage rates as they also remain sticky at current levels. The main benefit remains positive yields on savings and cash-like instruments – such as CDs and Money Market funds. We continue to utilize our DHT Annual Dividend Portfolio and our Money Market positions to generate between 3.6% and 4.8% yield on asset classes.⁴ This has proven to be a positive income strategy since 2021 on assets that are not equity based and helps produce income within your financial plan. We continue to feel confident in our duration expectations – as we still see rates coming down along with deflationary pressure from lower oil, assuming a swift end to the conflict. For now, we continue to realize as much yield as the market will provide onincome-focused assets. 

Investing into the dips: we can never time the market – but when adding assets to the market, we are actively working within a 4 to 6 month dollar cost average strategy. That strategy has been sped up recently with the dips in March. We will continue to monitor the market, and we remain optimistic in this market – as the data above continues to paint a positive long run picture for the U.S. Marketsregarding this current recovery from the March 30thlows.